According to the US business magazine Reuters, Microsoft is considering buying Netflix next year. This should enable the video streaming service to enter the video game market more strongly.
Netflix users have been able to do this since November 3rd Basic subscription with advertising for EUR 4.99 per month Reserve. Compared to the basic subscription without advertising, which is still offered, customers save three euros per month, but have to deal with four to five minutes of commercials per hour. There is advertising both before the start of a film or a series episode and during a running program. Netflix uses Bing Ads from Microsoft as the technology. Now the journalist Jennifer Saba from the renowned US business magazine Reuters predicts that Microsoft to take over Netflix next year will.
Microsoft and Netflix are already cooperating
So the step with the cooperation with the basic subscription was only the beginning. Microsoft’s chief legal officer Brad Smith has been on Netflix’s board of directors since 2015. Recently, the streaming pioneer had to struggle with declining business figures. Subscribers are consistently leaving the service and film studios are withdrawing their content, preferring to create their own video streaming services. Netflix has halved in stock market value in a year. All of this should speak for a favorable moment for the takeover, in which the competition authorities would probably have little to complain about in view of the numerous competition in the VoD area.
Microsoft itself has also been fighting for months to have the deal to acquire Activision Blizzard approved by various regulatory authorities. It is still completely open whether Microsoft is the creator behind WoW, Call of Duty & Co. may take over. Sony in particular is opposed and fears that popular game series will no longer appear on the Playstation. Even a public offer with a lifetime guarantee for Call of Duty on the Playstation could not convince Sony. Netflix would like to get more involved in the video games market, and Microsoft would be an experienced partner for this. Especially since the Redmond company may have combo packages from Xbox Game Pass including Netflix could offer.
Also worth reading: Netflix: The advertising subscription is missing House of Cards & Co.
Collection on the potential acquisition of Netflix by Microsoft:
- According to the US business magazine Reuters, Microsoft is considering taking over the video streaming service Netflix.
- Netflix has halved in stock market value in a year. After all, subscribers keep migrating and film studios prefer to move their content to their own streaming services.
- Netflix already uses Microsoft technology for the basic subscription with commercials. In addition, Microsoft’s chief legal officer Brad Smith has been on the Netflix board of directors since 2015.
- After buying Netflix, Microsoft could, for example, offer an Xbox Game Pass including a Netflix subscription.